Architects tend to use Xrefs on large scale projects, say, multistorey office blocks and/or carparks for instance. Layouts with multiple layers can become confusing, and especially when using LT as turning layers on/off and freezing/thawing layers is a mind numingly tedious task.
Having a layout showing 2 or 3 floors with various layers locked, frozen or hidden but using three seperate drawing files, allows the user to make alterations to one of the floor layouts, say move an RC column, or change the size of a group of windows, then by re-opening the drawings with the 2 or 3 layouts on one drawing, the changes are automatically made.
Allot like the top-down design feature of reference tables with 3D modelling. Same principle in that you can alter a dimension, and the information in the reference table can automatically alter the whole drawing when you regen the model.